Walton's Warehouse Reported Sales of $640,000, a Contribution Margin of $8

question 123

Multiple Choice

Walton's Warehouse reported sales of $640,000, a contribution margin of $8 per unit, fixed costs of $314,000, and a profit of $92,000. How many units did Walton's Warehouse sell?

• A) 11,500 units
• B) 31,125 units
• C) 50,750 units
• D) 70,375 units

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Definitions:

Relevant Costs

Only those costs that will be affected by a decision or action and therefore should be considered in decision-making.

Activity

In economic terms, refers to actions or engagements, such as production or consumption, within an economy.

Marginal Cost

The cost associated with the production of an extra unit of a product or service.

Value Meal

A bundled meal offered at a fast-food restaurant at a discounted price, typically including a main item, a side, and a drink.